IMD 2025: Smaller Economies Adapt, Larger Ones Face Challenges
The IMDb World Competitiveness Ranking 2025 sees significant shifts, with smaller economies demonstrating adaptability while larger ones face challenges. Switzerland, Singapore, and Hong Kong retain their top spots, highlighting the importance of economic stability and innovation. Meanwhile, emerging economies like the United Arab Emirates, Saudi Arabia, and Malaysia surge ahead due to modernization efforts.
Smaller economies can act more flexibly, but sustainable competitiveness relies on strong institutions, reform readiness, and investment in human capital. This is evident in Eastern Europe, where countries like Hungary and Bulgaria have experienced relative declines, while Central Asia's Kazakhstan and Uzbekistan have shown notable improvements.
Kazakhstan, for instance, has made strides in business efficiency and infrastructure, ranking 20th and 44th respectively. Its progress is driven by reforms in tax and corporate law, digital transformation programs, and stable macroeconomic conditions. The country also benefits from a high employment rate among youth and women, low energy prices for industrial companies, and the 'Digital Kazakhstan' strategy for economic diversification. These efforts have led to a nine-place improvement in the IMD ranking, surpassing established industrial nations like Japan.
However, many Central and Eastern European countries are slipping in the rankings due to declining innovation, regulatory uncertainties, and high trade dependencies. This underscores the importance of continuous reform and adaptation in the face of global transformations such as decarbonization, digitalization, and geopolitical shifts.
The IMDb World Competitiveness Ranking 2025 underscores the importance of adaptability, innovation, and good governance for sustained competitiveness. While smaller economies can act more flexibly, all nations must invest in human capital and implement reforms to stay competitive in the face of global transformations. Emerging economies like Kazakhstan serve as examples of progress through strategic investments and modernization efforts.
